ORGANISING FOR THE FUTURE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 3
CONTENTS
04 05-06 07 Forward Summary CWU current approach to organising
08 09 10 CWU industrial landscape Points for further consideration Introduction SWOT analysis
11 12 13-14 Changes in the UK labour market Employment in post, telecoms and The CWU today financial services
15-17 18-19 20-23 Trade union membership CWU membership forecasts Trade union density and finances
24 25-31 32-34 CWU membership and density in Potential new CWU target Potential for CWU membership the post and telecoms sectors companies in the post and growth outside the post and telecoms sectors telecoms sectors
35-38 39-40 41-42 Other union recruitment and The impact of digitalisation in the Expectations of future growth and organising strategies and targets post, telecoms and finance sectors decline in the labour market
43-44 Challenges for trade union organising in the new world of work PAGE ORGANISING FOR THE FUTURE 4 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
FORWARD There has never been a more important time to be a trade union member.
he UK labour market has experienced For our part, pretty much since the CWU first came into being, an explosion of insecure employment, we have seen a decline in membership as employee numbers false self-employment and poverty pay in our core recognised companies continue to fall due to Tsince the 2008 recession. privatisation, competition, cost cutting and automation. The so-called ‘gig economy’ poses a major threat to This cannot continue if we are to be certain of our future as standard forms of employment, as low cost businesses rely a standalone union. We must look to stabilise our existing on casual workers who are paid piece rates and denied basic membership levels and grow our membership where possible. employment rights. We must ask ourselves whether we can afford not to organise New technologies are set to fundamentally alter the way we and represent new and self-employed workers in our sectors live and work, in what is being termed the ‘Fourth Industrial and beyond, if we are to protect and improve labour standards Revolution’. These changes will create new jobs, but there are for our traditional membership base in the future. The whole predictions that up to 11 million UK jobs are at risk through union must be open to fresh ideas and innovative strategies robotics and digitalisation over the next two decades. and the “Organising for the Future” document, produced by our Research Department, is a very welcome addition to this This is a moment where the CWU and the wider trade union crucial debate. movement must accept our responsibility to make fresh demands on a new deal for all workers and develop innovative Whilst recognising the important recruitment and organising solutions that can organise far greater numbers of workers in work we already do, this document looks at where there might this new and increasingly hostile world of work. be opportunities for the CWU to build on our existing activities and expand into new areas. It aims to inform a debate about By taking on this challenge we can defend our existing the shape of our organising strategy in a new digital age. members against a race to the bottom on pay and conditions, stand up for all working people, and pursue new opportunities for membership growth.
Dave Ward General Secretary April 2018
We must ask ourselves whether we can afford not to organise and represent new and self- employed workers in our sectors and beyond, if we are to protect and improve labour standards for our traditional membership base in the future.” ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 5
SUMMARY
Trade union membership in the UK • Non-CWU membership in the post and telecoms sectors can • Union membership is in long term decline, falling from now be estimated as 330,677. 13 million at its peak in 1979, to 6.2 million today. Unions are heavily skewed towards the public sector and older workers. Membership of other large TUC affiliated trade unions • Around 6.2 million employees were trade union members in 2016, down by 275,000 (4.2%) over the year. This was the • Despite the drop in union membership overall, some largest single fall since figures started to be recorded unions have succeeded in growing their membership in 1995. over the last few years.
• Trade union membership density fell from 32.4% in 1995 to • Unite’s membership has fallen by 27.7% from 1,573,000 in 23.5% in 2016. 2010 to 1,137,468 in 2016.
• Union density in the private sector fell from 21.4% in 1995 • Unison’s membership has fallen by 11% from 1,375,000 in to 13.4% in 2016. 2010 to 1,225,500 in 2016.
• Union density in the public sector fell from 61.3% in 1995 • GMB’s membership is up by 2.5% from 602,000 in 2010 to 51.7% in 2016. to 617,213 in 2016, although it has seen declines in recent years. • Women represent over half (54.5%) of all trade union members. • Usdaw’s membership has grown by 11% from 387,000 in 2010 to 429,463 in 2016. • Union members over 50 years old represent 39.1% of all members, whilst union members under 24 years old represent just 4.7% of all members. Changes in the labour market
• Ethnic minorities are underrepresented in union • Since the financial crisis in 2008, there has been a membership, making up 9.8% of all trade union members significant and rapid rise in self-employment and non- compared with 11.8% of all in employment. traditional, insecure forms of employment including zero hours contracts, agency work, and piecework in the so-called ‘gig economy’. CWU membership • Online crowdsourcing platforms such as Uber and • CWU membership increased marginally during 2017 TaskRabbit have created a new category of digital platform to 191,424, but the overall trend is one of decline. worker without basic employment protection. Membership has fallen by 30.4% over the last 22 years, from 275,055 in 1995. • There is evidence of a major problem of false self- employment, with estimates that nearly half a million • Projections now suggest that the CWU will have between workers could be in this situation.1 167,092 and 184,560 members by 2024. • The UK employment rate is at a near-record high, but levels • The CWU has 38,158 female members, representing 19.7% of in-work poverty have risen dramatically, with 1.7 million of the current total. more people affected than in 2010-11 when the economic recovery began. There are a total of 8 million people, • Black and minority ethnic (BAME) members who have including 2.7 million children, living in poverty despite being declared their ethnicity account for 8% of the total. in a working family.2
• The union has 18,085 members under the age of thirty, or • The growth of unregulated, low cost competition poses 9.3% of the total. a threat to jobs and labour standards in the regulated economy. This is a clear threat in the postal sector, • We estimate the CWU to represent 36.4% of workers in the where the use of self-employed owner drivers by parcel post & courier sector, 30.9% of workers in the telecoms companies threatens to accelerate a race to the bottom sector and 34.5% of workers in the post & courier and on pay and conditions. telecoms sectors combined.
1 Citizens Advice estimated in 2014 that one in ten or 460,000 self-employed workers were falsely self-employed. There were 4.8 million self-employed workers in 2017, so based on the research by Citizens Advice the figure is likely to have increased to at least 480,000 today. 2 UK Poverty 2017, Joseph Rowntree Foundation, December 2017 PAGE ORGANISING FOR THE FUTURE 6 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
The impact of digitalisation Other union and automation on jobs organising activity
• Digitalisation of the economy poses a major threat • Trade unions are thinking differently and exploring to existing jobs and labour standards. new ways and ideas for adjusting their recruitment, organising and campaigning strategies to capture new • Commentators predict that between approximately members in the changing world of work. 3.2 million3 and 11 million4 UK jobs are at risk over the next two decades due to digitalisation and automation. • Unions including Unite and the GMB have made a conscious decision to pursue an issue based organising strategy in • Although digitalisation is set to be hugely disruptive for some areas that centres on campaigning, political pressure the labour market, there is expected to be a small overall and legal representation, such as in Sports Direct, Uber growth in employment over the next ten years driven and ASOS. by construction; trade, accommodation and transport; business and other services sectors. • Issue based organising often involves unions joining forces with other interest groups to strengthen their campaigns. • Observers generally expect digitalisation to lead to a For example, whilst Unite led the campaign for workers in reduction of middle skilled jobs, and a growth in low Sports Direct, they were backed by a number of supporters skilled and high skilled jobs, which threatens to including Unison, 38 Degrees, local MPs, and the media. exacerbate inequality. • Issue based campaigns regularly gain public attention and • Jobs at most risk of automation tend to be those that some have brought positive change for workers. However, follow well defined procedures, including office work and there is no clear evidence that they have been particularly clerical tasks; sales and commerce; transport, logistics, successful to date in building membership density. credit analysis and insurance claim processing. • Unions including Unite, the GMB, Usdaw and the • Jobs at least risk tend to be those that require creative or Independent Workers of Great Britain (IWGB) are striving social intelligence, or a high degree of flexibility and physical to recruit members in the ‘gig economy’. This includes adaptability. These include roles in computing, engineering, unregulated delivery companies Hermes, Yodel and legal services, health, social care, business, education, arts CitySprint. and the media. • The GMB and the IWGB have made efforts to recruit, • Postal service mail sorting jobs and heavy truck driving organise and represent online platform workers, including in jobs are thought to be at a relatively high risk of being Uber and Deliveroo. automated over the next decade or two. • The GMB won a landmark tribunal case on behalf of Uber • Telecoms installers and repairers are thought to be at drivers in 2016, and has since launched claims for self- relatively low risk, but this could change with the growth of employed couriers in Hermes and DPD. The IWGB has won fibre networks. tribunal cases for cycle couriers at Addison Lee, CitySprint and Excel. • Routine customer service roles will increasingly be automated, but there will still be a need for workers to deal • Unions including BECTU (now a division of Prospect), with more complex queries. Community and Ver.di have a clear offering for self- employed workers, including advice on tax and standard • The impact of digitalisation on jobs in the finance sector rates of pay, support with client disputes and counselling on is expected to be varied, with some roles at high risk of contractual and social security issues. automation and some at low risk. • Unions such as Usdaw have adjusted their offering to make • New high skilled jobs are expected for software and union membership financially attractive, with discounts on application developers, specialists in networking, artificial insurance and other goods and services which can cover intelligence; and designers and producers of new intelligent the cost of membership. machines. • Unite has introduced low cost community membership for • New low or unskilled jobs are expected to include data people outside of the workplace, which helps to extend its entry workers on digital platforms and gig workers in the influence and raise its profile. ‘collaborative’ economy including drivers, cleaners and odd jobbers.
3 OECD estimate of 10% of UK jobs at risk, 2016 4 Transformers, How machines are changing every sector of the UK Economy, Deloitte, 2016 ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 7
CWU CURRENT APPROACH TO ORGANISING
In 2012, the CWU disbanded its central organising department and allocated responsibility for managing the union’s organising activity to the industrial constituencies.
In the postal constituency, we are currently focusing in particular on tackling areas of non membership in Royal Mail Group under the banner of ‘Project 20 Plus’. We are also looking at the potential for organising and recruitment in non- recognised companies, including in UK Mail where we already have some members.
In the telecoms and financial services sectors, we are working on maximising our membership density in our core recognised areas such as BT, Santander and Telefonica 02, whilst also seeking to grow membership in other areas. This includes non-recognised companies such as Virgin Media, Sky, PlusNet, Teleperformance, Convergys, Vodafone and EE (now a non- recognised part of BT). There has been a particular focus on campaigning and building membership in contact centres in recent years and this is set to continue in 2018.
As part of the CWU’s ongoing Redesign project, the NEC has recognised the need to develop a clearer and more ambitious central organising strategy. Work is continuing towards that goal, and this document forms part of that project.
As part of the CWU’s ongoing Redesign project, the NEC has recognised the need to develop a clearer and more ambitious central organising strategy.” PAGE ORGANISING FOR THE FUTURE 8 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
CWU INDUSTRIAL LANDSCAPE SWOT ANALYSIS
STRENGTHS WEAKNESSES The CWU is a strong industrial trade union with high The CWU has a declining membership base, largely membership density in our core recognised employers. due to a gradual fall in headcount in our core recognised employers. The union is well equipped to service and meet the needs of existing core members. The union has no current offering designed to meet the needs of the expanding labour force of We have a clear organising strategy for our core self-employed workers. recognised employers. The CWU has not taken up the cause of any The union is targeting members in new areas including self-employed workers through campaigns or legal in EE, contact centres and UK Mail. action in our sectors, arguably putting us behind other unions in laying claim to these workers as The union has been working on ways to recruit and future members. engage under-represented groups including women, BAME, and young workers, with well established The CWU has no dedicated resource or unit to service structures to support this effort. the needs of self-employed workers or members in new areas. The CWU has raised its profile through an innovative communications strategy, including highly effective Despite considerable efforts, like other unions the use of social media. CWU has struggled to recruit and engage young workers in sufficient numbers. The union has a new membership offer with discounts on benefits and services.
OPPORTUNITIES THREATS The parcel delivery market is growing and whilst other UK trade union membership is in decline, posing a unions are targeting this area, it remains a largely threat to the CWU and our movement as a whole. unorganised sector. Work is increasingly becoming decentralised, The UK contact centre industry is a major employer, flexible, and non routine. Traditional methods of and there is considerable potential for the CWU to industrial unionism are unlikely to work well in this build on our existing presence in this sector. the new landscape.
There is an expected expansion in employment Headcount reductions are expected to continue in opportunities in the IT sector, and union membership Royal Mail as a result of competition, cost cutting in the sector is currently low. The CWU could look to and increased automation. expand and grow our activities in this area. Other trade unions including Unite and the GMB are The CWU could explore ways of developing our arguably ahead of the CWU in shaping their offering communications strategy to support our organising for workers in the new world of work. activity. A failure to recruit and organise casual workers in With the right offer and approach, trade union our core sectors risks undermining secure, better-paid, representation has massive potential to appeal to young direct labour. workers, who are disproportionately affected by low pay and insecure jobs. The CWU has an opportunity The CWU’s age demographic is skewed towards older to communicate the benefits of union membership to workers, with more than 90% of members aged over young workers more effectively, and to provide a new and 30, which puts succession planning and future innovative membership offer that better suits their needs. membership levels at risk as older members retire.
The CWU has more potential to give people a voice and campaign on issues that affect them, both in work and in their everyday lives. We could develop more digital tools and platforms to help recruit, support and lobby on behalf of a wider group of members. ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 9
POINTS FOR FURTHER CONSIDERATION
The CWU must continue with our The CWU should put more The CWU should take a fresh organising strategy of maximising investment into growing look at how we can provide and membership levels in our core membership in contact centres market an improved offer for recognised areas, particularly in and building a reputation as the retired members. Royal Mail and BT. leading union for contact centre workers in the UK. 13 02 The CWU should look at how we The CWU should focus more on 07 can best develop digital tools and putting recruitment and organising The CWU should target members platforms to attract and represent at the heart of everything we in companies outside of but a wider group of members. This do, working together across related to our core areas. This will help us to actively connect our the union to strengthen our could include companies in IT, industrial and political agendas, representative structures and fulfil data warehousing and the wider challenge employers and hold our recruitment potential. financial services sector. government to account. 03 08 14 The CWU should strengthen our The CWU should consider whether The CWU should organise a regular efforts to recruit and organise there is scope to build on our meeting with other trade unions young members, women members campaign for agency worker rights in our core sectors with the aim of and ethnic minority members. and use this to further promote building a better understanding CWU recruitment activities. of our respective organising priorities. This will assist us in 04 targeting our resources effectively The CWU should look seriously 09 and avoiding competition or at how we can effectively recruit, The CWU should continue to disputes with other unions. organise and represent workers promote its new benefits and in the growing parcel delivery services package, and should sector, including in UK Mail. This ensure a much greater focus on 15 is likely to require some upfront regularly updating and improving The CWU should call on the investment, but could give the membership services. TUC to help coordinate a union an important platform for planned approach to organising longer term membership growth. 10 between unions. The CWU should look at how 05 we can improve our offer to The CWU should establish what young members, by identifying kind of membership offer would innovative new services that be needed to attract and retain would attract young people to self-employed workers, including join the CWU. parcel couriers. This should include an assessment of how we would service these workers, 11 and whether we would need to The CWU should consider establish a dedicated resource or introducing family membership, unit to take responsibility for this. which for a small annual fee would provide additional benefits to existing members by extending a range of services to their wider family. PAGE ORGANISING FOR THE FUTURE 10 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
INTRODUCTION
This paper examines the sectors in which the CWU organises and the potential for growth in companies both within and outside of our traditional areas.
It also looks at where other unions are targeting their recruitment activities and the kinds of strategies they use to organise and build membership.
With millions of jobs expected to be automated over the next two decades, the document considers the potential impact of computerisation and digitalisation on the labour market.
The aim of the document is to inform the debate on those companies and sectors the CWU should consider targeting in the future.
The aim of the document is to inform the debate on those companies and sectors the CWU should consider targeting in the future.” ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 11
CHANGES IN THE UK LABOUR MARKET
The UK employment rate is 75.3%, the joint highest since comparable records began in 1971. After rising to 8.5% of the working-age population in 2011, unemployment has now dropped back down to 4.4%.
However, the labour market has witnessed a rapid rise in non-traditional, insecure and low paid forms of employment since the 2008 recession. The number of people employed on a zero hours contract in 3.2 their main job has risen from 143,000 in 2008 to 903,000 in late 2017.5 million workers
There are now over 800,000 agency workers, up by 25% since in insecure the financial crash.6 employment Nearly 5 million crowd workers in the UK are estimated to have found work through online platforms such as Uber and Upwork.7
The level of self-employment in the UK increased from 3.8 million in 20088 to 4.8 million in 2017 (representing 15.1% of all people in work).9 It is estimated that nearly half a million of those are falsely self-employed.
There are an estimated 3.2 million workers, one in ten of those working today, who face significant insecurity at work.10
Self-employed workers are not entitled to basic employment rights such as the minimum wage, and 45% of self-employed workers reportedly earn less than the statutory National Living Wage.11
As a consequence of these changes, levels of in-work poverty have risen dramatically, with 1.7 million more people affected now than in 2010-11 when the economic recovery began. There are a total of 8 million people, including 2.7 million children, living in poverty despite being in a working family.12
5 ONS Labour Force Survey, September 2017 6 The UK’s tight labour market and zero hours contracts, Resolution Foundation, 21 February 2018 7 UNI Europa, University of Hertfordshire, Feb 2016 8 Trends in self-employment in the UK: 2001 to 2017, ONS, 7 February 2018 9 UK Labour Market, March 2017, ONS, 15th March 2017 10 Living on the edge, the rise of job insecurity in modern Britain, TUC, December 2016 11 Revenue cracks down on false self-employment, Financial Times, 21st October 2016 12 UK Poverty 2017, Joseph Rowntree Foundation, December 2017 PAGE ORGANISING FOR THE FUTURE 12 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
EMPLOYMENT IN POST, TELECOMS AND FINANCIAL SERVICES
In 2016 there were 505,061 people employed in the post and telecoms sectors combined. Of this, 329,240 were employed in the post and courier sector and 175,821 were employed in the telecoms sector. In the same year, there were 582,344 people employed in the financial services sector. These figures have fluctuated during the last few years, but are now broadly the same as they were in 2010.
The figures in themselves do not allow us to understand the nature of the jobs created or lost, such as whether they are or were full-time or part-time.
Table 1: Employment in Post, Telecoms and Financial Services 2010 - 2016
Post and courier Post, courier Year Telecommunications Financial services* services and telecoms 2010 324,916 176,402 501,318 584,827
2011 301,828 169,456 471,284 571,468
2012 289,838 162,252 452,090 569,368
2013 305,149 168,780 473,929 554,060
2014 319,071 178,201 497,272 551,503
2015 317,152 180,689 499,760 547,142
2016 329,240 175,821 505,061 582,344
*Includes banks, building societies and other financial intermediation, but excludes insurance and pension funding Source: ONS commissioned data/Labour Force Survey
Table 2: Employment in Post, Telecoms and Financial Services 2010 - 2016
700,000 Post and courier services
600,000 Telecommunications 500,000 Post, courier and telecoms 400,000 Financial services 300,000
Number in employment 200,000
100,000
0 2010 2011 2013 2012 2014 2015 2016
Source: ONS Commissioned Data/Labour Force Survey ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 13
THE CWU TODAY
Table 3 below details the CWU’s membership, income and The union’s income, in the form of gross member expenditure levels since the union was created in 1995. contributions, has risen over this period, but has not kept pace with inflation. Gross member contributions increased by 21% CWU membership fell by over 84,000 between the year the between 1995 and the end of 2016 compared with a 74% union was created and December 2016. This is a decline of increase in the RPI over the same period. over 30% from 275,055 in 1995 to 190,628 in 2016.
Table 3: CWU Income and Expenditure 1995 - 2016
year ended year ended year ended year ended year ended 3 year ended year ended year ended 31 Dec 16 31 Dec 15 31 Dec 14 31 Dec 13 31 Dec 12 31 Dec 11 31 Dec 10 31 Dec 09 General Fund Gross contributions £29,797,836 £30,178,750 £30,414,525 £30,802,103 £9,776,936 £28,291,941 £27,837,454 £28,376,524 from Members Less: Political Fund (£1,655,035) (£1,680,292) (£1,717,177) (£1,728,523) (£1,663,041) (£881,185) (£909,582) (£958,636) contributions General Fund Net £19,430,129 £19,967,327 £20,248,585 £20,550,026 £19,815,671 £19,194,744 £18,952,315 £19,549,358 Income Expenditure (£20,026,720) (£20,528,769) (£17,732,957) (£18,050,833) (£17,687,828) (£18,082,522) (£19,056,231) (£20,661,102) Membership at end 190,628 192,420 197,462 201,928 201,311 205,466 208,729 217,807 of year
year ended year ended year ended year ended year ended 3 year ended year ended year ended 31 Dec 08 31 Dec 07 31 Dec 06 31 Dec 05 31 Dec 04 31 Dec 03 31 Dec 02 31 Dec 01 General Fund Gross contributions £28,434,017 £28,725,448 £27,924,531 £27,066,785 £26,498,167 £26,933,056 £27,663,641 £27,827,096 from Members Less: Political Fund (£997,718) (£1,042,798) (£1,061,855) (£1,061,033) (£1,073,642) (£1,138,926) (£1,194,627) (£1,241,543) contributions General Fund Net £19,504,986 £19,786,666 £19,354,506 £18,660,286 £19,562,762 £19,648,120 £20,267,069 £20,357,667 Income Expenditure (£18,807,063) (£17,285,264) (£15,591,455) (£15,189,880) (£17,066,078) (£19,624,966) (£21,113,496) (£21,618,462) Membership at end 230,968 236,679 238,817 244,461 241,849 258,696 266,067 279,679 of year
year ended year ended year ended year ended year ended 3 year ended 31 Dec 00 31 Dec 99 31 Dec 98 31 Dec 97 31 Dec 96 31 Dec 95 General Fund Gross contributions £27,381,622 £25,968,505 £25,224,459 £25,202,768 £24,816,773 £24,591,465 from Members Less: Political Fund (£1,248,003) (£1,266,700) (£1,229,099) (£1,194,829) (£1,022,461) (£963,390) contributions General Fund Net £20,114,074 £18,996,881 £18,759,609 £18,825,510 £18,460,622 £18,357,910 Income Expenditure (£19,108,712) (£19,242,542) (£18,410,785) (£18,879,785) (£17,871,396) (£19,261,622) Membership at end 284,422 281,472 287,732 273,814 274,820 275,055 of year
Source: CWU PAGE ORGANISING FOR THE FUTURE 14 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
Table 4 below shows that while net income has remained relatively stable, expenditure has fluctuated.
Table 4: CWU Income and Expenditure 1995 – 2016
35,000,000 General Fund Gross contributions from members 30,000,000 General Fund Net Income 25,000,000 Expenditure
£ 20,000,000 Political Fund contributions 15,000,000
10,000,000
5,000,000
0
31 Dec 9531 Dec 9631 Dec 9731 Dec 9831 Dec 9931 Dec 0031 Dec 0131 Dec 0231 Dec 0331 Dec 0431 Dec 0531 Dec 0631 Dec 0731 Dec 0831 Dec 0931 Dec 1031 Dec 1131 Dec 1231 Dec 1331 Dec 1431 Dec 1531 Dec 16
Table 5 below shows the decline in CWU’s membership since 1995. After a small increase and a number of stable years, membership has fallen steadily in the last 10 years, although the rate of decline has slowed in recent times.
Table 5: CWU Membership 1995 – 2016
350,000
300,000
250,000
200,000 Members 150,000
100,000
50,000
0
31 Dec 9631 Dec 9731 Dec 9831 Dec 9931 Dec 0031 Dec 0131 Dec 0231 Dec 0331 Dec 0431 Dec 0531 Dec 0631 Dec 0731 Dec 0831 Dec 0931 Dec 1031 Dec 1131 Dec 1231 Dec 1331 Dec 1431 Dec 1531 Dec 16 ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 15
TRADE UNION MEMBERSHIP AND FINANCES
Membership
Around 6.2 million people in employment were trade union Female employees are more likely to be a trade union member. members in 2016, down from 7.0 million in 2007. The proportion of female employees who are in a trade union was around 25.9% in 2016, compared with 21.1% of male Trade union membership reached a peak of 13 million employees. employees in 1979, before declining sharply through the 1980s and early 1990s. It stabilised at around 7 million Ethnic minorities are underrepresented in union membership, between 1995 and 2007, and then fell to around 6.5 million making up 9.8% of all trade union members compared with in 2011 before falling further to reach its current level. 11.8% of all in employment.
As employee numbers have risen, the proportion of employees Older workers account for a larger proportion of union who are trade union members fell slightly to 23.5% in 2016 members than young workers. Union members over 50 years from 24.7% in 2015. This is down from a membership rate old represent 39.1% of all members, whilst union members of 32.4% in 1995. under 24 years old represent just 4.7% of all members.
Union density in the private sector was 13.4% in 2016, The TUC is made up of 49 affiliated unions and represents down from 13.9% in 2015 and 21.4% in 1995. around 6.2 million members. The CWU remains its 8th largest union. Union density in the public sector was 51.7% in 2016, down from 54.8% in 2015 and 61.3% in 1995.
Table 6 shows membership levels in the largest TUC affiliated unions.
Table 6: Trade union membership of largest TUC affiliates 2010 – 2016
Union 2016 2015 2014 2013 2012 2011 2010
Unite 1,137,468 1,382,000 1,405,000 1,424,000 1,510,000 1,515,000 1,573,000
Unison 1,225,000 1,256,000 1,270,000 1,302,000 1,318,000 1,375,000 1,375,000
GMB 617,213 623,000 626,000 613,000 610,000 602,000 602,000
Usdaw 429,463 441,000 435,000 426,000 412,000 399,000 387,000
NUT N/A 372,000 376,000 388,000 387,000 375,000 377,000
NASUWT 286,541 321,000 330,000 337,000 339,000 327,000 327,000
PCS 185,785 195,000 231,000 263,000 281,000 292,000 302,000
CWU 191,424 192,000 197,000 202,000 201,000 205,000 209,000
Source: Certification Officer PAGE ORGANISING FOR THE FUTURE 16 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
Not all unions are TUC affiliated. Around 900,000 people are members of unions which do not affiliate to the TUC. The largest of these is the Royal College of Nursing with over 415,000 members.
Table 7a below shows membership levels in the six largest TUC affiliated unions between 2000 and 2016. The data shows significant membership decline for the CWU and Unite and a more mixed picture for the GMB, Unison and PCS whose memberships have fluctuated. Usdaw’s membership has shown the strongest growth through this period.
Table 7a: Union membership 2000 to 2016 ('000)
Union 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
Unite* 1,137 1,382 1,405 1,424 1,510 1,515 1,573 1,635 1,952 1,938 1,957 1,967 1,889 2,147 2,235 2,298 2,376
Unison 1,225 1,256 1,270 1,302 1,318 1,375 1,375 1,362 1,344 1,343 1,317 1,310 1,301 1,289 1,273 1,272 1,272
GMB 617 623 626 613 610 602 602 601 590 576 575 572 600 704 689 684 694
USDAW 429 441 435 426 412 399 387 371 356 341 341 340 332 321 310 310 310
PCS 186 195 231 263 281 292 302 300 305 312 313 311 295 286 282 268 258
CWU 191 192 197 202 201 205 209 218 231 237 239 244 242 259 266 280 284
*or constituent unions Source: Certification Officer
Table 7b is a diagrammatic version of the same data. This is useful in demonstrating the scale of declining membership that has affected some of the largest TUC affiliated organisations.
Table 7b: Union membership 2000 - 2016
2500 CWU
2000 GMB
PCS 1500 Unite (or constituent unions)
1000 Unison Members (000s) Members
500 USDAW
0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: Certification Officer ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 17
Table 8a: Union total income 2000 to 2016 (£000s)
Union 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
Unite* 173016 165424 160992 164391 156880 163000 151834 151298 112499 173097 172660 172967 151443 180368 178546 177219 178561
Unison 164487 201724 168818 181688 204400 186973 181467 176486 176960 168149 158961 145049 132771 124749 121564 117707 110033
GMB 71516 71241 63085 64679 65727 74863 58507 58711 92169 61849 52903 52472 47857 47252 47655 46319 46388
USDAW 37761 40257 38242 45069 42847 40808 39112 36607 35699 39665 32406 30024 28112 25105 23164 22608 20430
PCS 37962 33222 37314 29693 21415 51101 19705 14839 34988 51655 31819 31538 26782 21817 28751 22532 25306
CWU 29465 31204 29670 30478 28858 36967 29207 29286 29705 29187 28446 27402 27954 28368 28529 28141 28551
* or constituent unions Source: Certification Officer
Table 8a shows the total income of the same TUC affiliates over the same period. Changes in income can sometimes serve as a more reliable indicator of a union’s strength than its membership figures. The impact of windfalls either from investments or the sale of assets such as buildings can have a profound effect. Both the GMB and PCS have experienced extreme financial fluctuations at various points in this 15 year period.
Table 8b illustrates graphically the state of union finances since 2000.
Table 8b: Union total income 2000 to 2016
250000 CWU
200000 GMB
PCS 150000 Unite (or constituent unions) £ 000 100000 Unison
50000 USDAW
0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: Certification Officer PAGE ORGANISING FOR THE FUTURE 18 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
CWU MEMBERSHIP FORECASTS
At the end of December 2017, CWU membership stood at [2] Sees the change based on the figures from 2000 to the 191,424: an increase of 0.4% against the previous year. end of 2017. This can be largely attributed to an upturn at the time of the Royal Mail industrial action ballot, but outside of this [3] Shows the projection using 2010 as a base point. period CWU membership continued to fall. Although there have been other years when CWU membership has grown [4] Shows the projection based on the change in membership (1998, 2000, 2005, 2013), the overall trend has been one of from 2015 to 2016. decline, with membership falling by 30.4% since 1995. Finally, [5] shows the membership projection based on the To have an understanding of how CWU membership levels change in membership between 2015 and 2017. may change in future years, we have plotted the following five different membership scenarios based on past trends. The following figures are projections only and are included for illustrative purposes. [1] Projects membership on the basis of the change seen between 1995, when the CWU was created, and the end of 2017.
Table 9a - CWU Membership Projections 2017-2024
[1] 95 to 17 [2] 00 to 17 [3] 10 to 17 [4] 15 to 16 [5] 15 to 17
Av annual % change -1.38% -1.92% -1.18% -0.94% -0.52%
Multiplier 0.9862 0.9808 0.9882 0.9906 0.9948
2017 191,424 191,424 191,424 191,424 191,424
2018 188,778 187,742 189,157 189,622 190,428
2019 186,169 184,131 186,916 187,838 189,437
2020 183,596 180,590 184,703 186,070 188,452
2021 181,059 177,116 182,515 184,319 187,471
2022 178,557 173,710 180,353 182,584 186,496
2023 176,089 170,369 178,217 180,865 185,525
2024 173,655 167,092 176,107 179,163 184,560
Source: CWU
CWU membership could fall to between 167,092 and 184,560 by 2024 based on past trends.” ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 19
Table 9b: CWU Membership Projections 2017 – 2024
195,000 95 to 17 190,000 00 to 17 185,000 10 to 17 180,000
175,000 15 to 16
170,000 Number of CWU Members CWU Members Number of 15 to 17
165,000
160,000 2017 2018 2019 2020 2021 2022 2023 2024
Source: CWU
The membership figures do not reflect the average financial contribution for each member. It is important to understand if an increasing percentage of our membership pays less than the headline rate of subscriptions. Table 9c provides this information on the split between those paying the full rate of subscriptions and those not, for the period 2010 to 2017.
Table 9c – CWU Membership by Subscription plan 2010-2017
Year Total Membership Plan 1 % plan 1 Other Plans % other
Dec-10 208,384 142,883 68.57% 65,501 31.43%
Dec-11 204,362 142,689 69.82% 61,673 30.18%
Dec-12 201,311 140,359 69.72% 60,952 30.28%
Dec-13 201,928 140,326 69.49% 61,602 30.51%
Dec-14 197,462 137,091 69.43% 60,371 30.57%
Dec-15 192,420 131,821 68.51% 60,599 31.49%
Dec-16 190,609 129,129 67.75% 61,480 32.25%
Dec-17 191,424 127,330 66.52% 64,094 33.48%
Source: CWU
The above table illustrates that concerns about the “hollowing from 132,000 in 1995 to 82,800 full time equivalent in 2017. out” of the CWU’s full-rate subscription base is somewhat This figure rose from around 70,000 in 2015 due to BT’s justified given the significant differences in income that can acquisition of mobile operator EE. In 1995 Royal Mail employed be derived from different subscription plans. The proportion 189,000 full time employees. In 2017 the company’s year end of members paying the full subscription rate has fallen from headcount was 141,800, and it employed 148,170 people on a 68.5% in 2010 to 66.5% in 2017. full time equivalent basis.
Structural change in the union’s core recognised companies has had a significant impact both on membership and potential membership levels. Employee levels in BT have fallen PAGE ORGANISING FOR THE FUTURE 20 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
TRADE UNION DENSITY
The big picture
Table 10a Trade union density in the UK
Year Public sector % Private sector % All %
2000 60.3 18.8 29.8
2001 59.7 18.4 29.3
2002 59.8 17.7 28.8
2003 59.4 18.2 29.3
2004 58.8 17.3 28.8
2005 58.2 16.9 28.6
2006 58.7 16.6 28.3
2007 59.0 16.1 28.0
2008 57.1 15.5 27.4
2009 56.6 15.1 27.4
2010 56.3 14.2 26.6
2011 56.6 14.2 26.0
2012 56.3 14.4 26.0
2013 55.4 14.4 25.6
2014 54.3 14.2 25.0
2015 54.8 13.9 24.7
2016 51.7 13.4 23.5
Source: Labour Force Survey, Office for National Statistics
Overall trade union density in the UK is continuing to fall, standing at 23.5% in 2016 down 1.2% from the previous year and down 3.1% from 2010.
There continues to be a marked difference between trade union density in the public and private sectors, with density 13.4% almost four times as high in the former than the latter. Private sector union density
51.7% Public sector union density ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 21
Table 10b: Pay or conditions affected by collective agreement (UK)
Year Public sector % Private sector % All %
2000 74.2 22.5 36.4
2001 72.6 21.9 35.5
2002 73.6 21.1 35.2
2003 71.6 21.9 35.5
2004 71.2 20.5 34.7
2005 70.9 20.6 34.9
2006 69.0 19.6 33.3
2007 72.0 20.0 34.6
2008 70.5 18.7 33.7
2009 68.2 17.8 32.7
2010 64.5 16.9 30.9
2011 67.8 17.0 31.2
2012 63.7 16.1 29.3
2013 63.8 16.6 29.5
2014 60.7 15.4 27.5
2015 60.7 16.1 27.9
2016 59.0 14.9 26.3
Source: Labour Force Survey, Office for National Statistics
Table 10b shows what many consider to be the most important measure of trade union influence and that is the percentage of workers whose pay or conditions are affected by collectively-bargained agreements. This figure is higher than that for trade union density, but not to a great degree.
Table 10c: Non-union members with a trade union presence in the workplace (UK)
Year Public sector % Private sector % All %
2000 87.8 34.9 48.9
2001 88.1 34.0 48.2
2002 88.3 33.6 48.0
2003 87.1 34.1 48.4
2004 86.8 32.6 47.6
2005 86.4 32.4 47.7
2006 86.7 31.7 47.0
2007 86.2 31.5 46.6
2008 86.9 30.6 46.7
2009 85.9 30.3 46.7
2010 85.8 29.7 46.1
2011 87.1 28.5 44.9
2012 86.4 28.5 44.6
2013 85.4 28.7 44.2
2014 84.9 28.1 43.3
2015 84.0 28.0 42.7
2016 83.0 26.7 41.1
Source: Labour Force Survey, Office for National Statistics PAGE ORGANISING FOR THE FUTURE 22 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
Table 10c shows the percentage of non-union members that Table 11a shows union membership density in post, telecoms nevertheless have a trade union presence in their workplace. and financial services. It shows that until 2011 all three sectors This is clearly important in understanding what numerical were tracking the trend in the economy as a whole with an basis trade unions have to expand their membership and also overall decline in union membership density numbers. the scope of collective bargaining. It is therefore encouraging that, taken across the economy as a whole, more than 41% In the postal sector, density levels have been liable to of non-union members report a trade union presence in their fluctuation since 2011, but the last ten years has seen an workplace. Given that the vast majority of workplaces are now overall decline from around 54% in 2006 to 40% in 2016. small and medium-sized enterprises, this achievement should This is the result of changes in the market such as the growth not be overlooked. However, the ongoing decline illustrates of unregulated parcel companies and couriers working on a the challenges facing trade unions regardless of the sector(s) flexible basis. they organise in. In the telecoms sector, membership density has risen slightly Tables 10a, b and c illustrate the steady decline in union power in the last year. However, the overall trend has also been one that has taken place over the previous 16 years, with only of decline over the last decade, falling from around 36% in 2003 bucking a remorseless downward trend. This has led 2006 to 24% in 2016. some commentators to conclude that trade unionism is facing an existential threat as the coverage of collective bargaining There are a variety of possible explanations for this, including reaches ever lower levels. reduced impact of a greatly downsized but still heavily unionised BT on employment in the sector, combined with the Trade Union Density – Post, Telecoms and casualisation of the workforce, traditionally a barrier to trade Financial Services union organisation.
The government collects statistics on trade union density as Union density in the financial services sector has fluctuated part of the Labour Force Survey. Three questions are asked of over the last five years but has continued to fall and is lower those surveyed: than in the post and telecoms sectors. i. Whether the person is a trade union member; ii. If they are not a union member is there a trade union presence in their workplace; iii. Are their terms and conditions affected by collective bargaining?
The Office for National Statistics (ONS) publishes this data for the UK as a whole under broad sectoral headings. The union has commissioned bespoke data from ONS on union membership in the post and courier sector, the telecoms sector and the financial services sector.
Tables 11a, 11b and 11c show the movement in union membership over these sectors over the last 11 years.
Table 11a: Union membership density 2005 to 2016
60 Post & Courier
50 Telecoms
40 Financial Services
Whole Economy
% 30
20
10
0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: ONS Commissioned Data / Labour Force Survey ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 23
Table 11b: Employees' terms and conditions affected by collective agreements 2005-2016
80 Post & Courier 70 Telecoms 60 Financial Services 50
Whole Economy
% 40
30
20
10
0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: ONS Commissioned Data/ Labour Force Survey
Table 11b shows the percentage of employees’ terms and conditions affected by collective agreements over the same 11 year period. Again for the most part of this period the trend in postal, telecoms and finance sectors tracks that in the whole economy and shows a gradual decline. Since 2011/12, the trend has been less steady than in previous years with coverage fluctuating, but still falling overall.
Table 11c: Non-union members in a workplace with a union presence 2005-2016
60 Post & Courier
50 Telecoms
40 Financial Services
Whole Economy
% 30
20
10
0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: ONS Commissioned Data/ Labour Force Survey
Finally, table 11c shows the percentage of non-union members in the workplace that report a union presence.
Generally speaking, despite peaks and troughs, the overall trend over the last 11 years across the post and courier, and financial service sectors is consistent with the economy as a whole. However, the telecoms sector has a lower proportion of non-union members in workplaces with a union presence, though this has grown in the past three years after falling for five years. PAGE ORGANISING FOR THE FUTURE 24 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
CWU MEMBERSHIP DENSITY IN THE POST AND TELECOMS SECTORS
Using the employment figures provided by ONS, and In the telecoms sector, table 12b shows a CWU density of reported above, we can calculate a rough estimate of CWU 30.9%, down from 31.8% in 2014. Total density in the sector density in the post and courier and telecoms sectors. is just 24% according to the ONS (as shown in Table 11a), a disparity that reflects different methodologies and the Thus, in the post and courier sector, table 12a shows a CWU presence of CWU members who are not included in the ONS density of 36.4%, which is down from 38.3% in 2014. Total definition of “telecoms”.13 density in the sector is 40% according to the ONS (as shown in Table 11a), reflecting the presence of other unions Overall, in the combined post and courier and telecoms organising there. sectors, table 12c shows a CWU membership density of 34.5% with an estimated 330,677 non-members.
Table 12a CWU density in the post and courier sector
2016 2014
Total employed in UK post and courier sector 329,240 318,130
Total CWU postal membership* 120,000 122,000
Density % 36.4% 38.3%
Non CWU members 209,240 196,130
Table 12b CWU density in the telecoms sector
2016 2014
Total employed in UK telecoms sector 175,821 179,341
Total CWU telecoms membership (excludes financial services)* 54,384 57,000
Density % 30.9% 31.8%
Non CWU members 121,437 122,341
Table 12c CWU density in the post and courier and telecoms sectors
2016 2014
Total employed in UK post and courier, and telecoms sectors 505,061 497,471
Total CWU membership* 174,384 179,000
Density % 34.5% 36%
Non CWU members 330,677 318,371
* excludes retired members Source for all tables: ONS Commissioned Data/Labour Force Survey and CWU.
13 The 24% density figure was calculated using a small sample size ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 25
POTENTIAL NEW TARGET COMPANIES IN THE POST AND TELECOMS SECTORS
The following section profiles a number of companies in the postal and telecoms sectors that the CWU could begin to target for membership growth, or that we could target more actively where we already have a presence.
Company profile: UK Mail Activities UK Mail is a postal service company offering upstream collection, sorting and delivery services across the UK. In September 2016 it was acquired by Deutsch Post DHL. The business delivers and collects over 3 billion mail items and 50 million parcels per annum. The latest data shows the company made pre-tax profits of £14.4 million in the financial year to March 2016, down from £20.1 million the previous year. The fall in profits was due to operational problems associated with the move to a new automated hub in Ryton, which is now reportedly operating well..
Table 13: UK Mail Group plc revenue and profit 2013/14 – 2015/16
Financial year 2015/16 Financial year 2014/15 Financial year 2013/14
Revenue £481.0 million £485.1 million £481.4 million
Operating profit £14.9 million £20.1 million £21.8 million
Profit before tax £14.4 million £20.1 million £21.9 million
Employees In February 2018, it was reported that DHL/UK Mail imposed a UK Mail has over 4,000 people working in more than 50 depots. 4% pay cut on its couriers, equating to around £2,000 per year. Since 2013, the number of people working for UK Mail has risen More than 20 drivers at various depots refused to accept the by almost two-thirds and the business remains poised cut, and were subsequently sacked. The GMB has written to for further growth in the future. the company demanding an urgent meeting, and at the time of writing (early March 2018) its members are talking about the Locations possibility of strike action. UK Mail has an extensive delivery network covering the whole of the UK, and its 50+ depots are located all over the country, Trade union presence from Inverness to Redruth, and the Isle of Man to Ipswich. The CWU is not aware of any other trade unions organising extensively in UK Mail to date. However, the imposition of a pay Employment practices cut in DHL/UK Mail has prompted the GMB to act on behalf of Like many of Royal Mail’s competitors, UK Mail relies heavily on drivers in both DHL and UK Mail, and this may lead to a greater the labour of self-employed owner drivers. Although officially focus by the GMB on organising UK Mail workers. classed as self-employed, these workers have many of the characteristics of employees and are thus likely to be falsely CWU activity self-employed. In recognition of the circumstances described above and the growing number of people employed by UK Mail, a concerted UK Mail workers are paid a piece rate worked out by the CWU organising effort has been proposed in order to build on number of stops made per round and the number and weight our existing presence in the company. The union aims to grow of packages delivered. As a result they are placed under our membership, improve workplace conditions and address the tremendous pressure to work long shifts, with lengths of over issue of false self-employment in the business. 12 hours widely reported, and work across long distances, with some rounds covering over 70 miles. Similarly, given the complex system used to determine payment, there are many reports of drivers being under paid. In addition, many drivers have reported that their hourly rate is below the National Minimum Wage. In March 2017, it was reported that UK Mail charges its couriers £216 a day to hire a replacement when they are off sick.14
14 UK Mail driver who was unable to work after car accident charged £800, The Guardian, 19 March 2017 PAGE ORGANISING FOR THE FUTURE 26 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
Parcel delivery sector
UK parcel volumes are growing strongly on the back of a booming e-commerce market. As a result, we are seeing more False self-employment vs intense competition in the sector as operators like Hermes, Yodel and DPD position themselves to capture market share. genuine self-employment Unlike Royal Mail, these unregulated parcel operators are not The genuinely self-employed are in business on their own accountable to minimum quality standards. They generally use account, offering services to their clients and customers low cost operating models and rely on self-employed owner drivers or ‘lifestyle couriers’ who have no job security and and in control of their activities at work. Inherent within the many have reported that they earn below the minimum wage. status of self-employment are diminished rights at work. For example, the self-employed are not entitled to the national On the back of their low cost strategy, Royal Mail’s competitors minimum wage, sick or holiday pay, or automatic enrolment are competing well on price and generally growing in the for tax and National Insurance. marketplace. Hermes, for example, delivers over 260 million parcels each year and is contracted to some of the UK’s largest False self-employment refers to those workers who despite online retailers, including JD Williams and Debenhams. It saw being self-employed have little control or autonomy over its turnover grow by 78% from £317 million in 2013 to £564 their affairs at work. Such misclassification is used by million in 2017. Its gross profit grew by 45% from £53 million employers to circumvent basic work place rights and means to £77 million over the same period. that workers suffer the downsides of self-employment, The following pages provide details of some of the key parcel without enjoying its benefits. For example, falsely self- delivery companies in the UK. Taking just Hermes, Yodel and employed workers are not entitled to the statutory minimum Amazon alone, the data indicates that there are over 30,000 wage, and they typically have no freedom to decide what workers in this sector who are falsely self-employed. Although work they do or to plan their working day. other unions are making efforts to build up membership in some of these companies, indications are no union has yet secured a major presence in the unregulated parcel delivery sector. ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 27
Potential target companies in the parcel delivery sector Company: Hermes Owner drivers or ‘lifestyle couriers’ Manual and non -manual distribution workers No. of employees/workers: No. of employees/workers:
15,000 660
Predominant employment model: Predominant employment model:
Self-employed owner drivers/ or ‘lifestyle couriers’ Employees
Main occupation/s: Main occupation/s:
Drivers Manual and non manual distribution workers
Pay and conditions summary: Pay and conditions summary:
Maximum payment is reported to be 80 pence per parcel Pay ranges from £7.77per hour for a night loader to delivered, but piece rates vary by parcel size and 50 £11.00per hour LGV driver pence is more typical according to reports from couriers. Hours – 44-48 per week Annual leave – 21 – 29 days per annum Additionally, Hermes drivers are responsible for expenses Maternity/paternity leave: statutory. including fuel, car insurance and maintenance. As a result, there have been reports that take home pay Other union representation: routinely comes to less than the statutory National Usdaw is recognised by Hermes for this group of workers. Minimum Wage.
Other union representation: Location:
Usdaw and GMB Dunstable, Peterborough, Rochester, Southampton, Sheffield, Bradford Location: Recruitment challenges: UK wide N/A Recruitment challenges:
Usdaw has reportedly been unable to recruit enough ‘self-employed’ couriers to have any real influence over pay and conditions, despite being approached by the couriers eight years ago.
GMB has launched legal action against Hermes on behalf of its lifestyle couriers, potentially making it more difficult for other unions to lay claim to these workers. PAGE ORGANISING FOR THE FUTURE 28 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
Company: Company: Yodel Amazon No. of employees/workers: No. of employees/workers:
8,000 7,700
Predominant employment model: Predominant employment model:
Self-employed/owner driver A mixture of permanent and agency warehouse workers.
Main occupation/s: Amazon logistics relies on independent contractors to provide its delivery services, and reportedly requires its Drivers drivers to be self-employed. Pay and conditions summary: Main occupation/s: Self-employed drivers are paid approx. £0.70 per parcel; Warehousing and drivers however this is subject to some variation. For example, some drivers have reported receiving as little as £0.60 Pay and conditions summary: per parcel. Warehouse workers are reportedly paid £8.23 per hour, In an average 6 day week drivers anticipate earning whilst pay for order pickers and packers ranges from between £200 and £250. £7.86 to £9.54 per hour. It is reported that Amazon drivers “can earn between However, there is no minimum guarantee. Indeed, there £28,527 and £30,994” per annum, however, this is based are many reports of couriers receiving below the National on the accruing bonuses and hitting targets. Minimum Wage. Drivers must also provide their own vehicle, insurance and fuel. Amazon reports that its ‘Flex’ drivers are paid £12-15 per hour, but this is not guaranteed and depends on the Warehousing staff are reported to be paid between number of parcels delivered and in what time. Flex drivers National Minimum Wage and £8.25 per hour. have reported taking home less than £8 per hour and being underpaid by ‘cowboy’ contractors. Other union representation: Other union representation: GMB and Usdaw Though the GMB represents some Amazon warehouse Recruitment challenges: workers there is no evidence to suggest it has a base among drivers. Given Yodel drivers are self-employed and may cycle in and out of employment for short periods, it is difficult to However, it was reported in April 2017 that the GMB was organise through traditional means. taking legal action against UK Express Delivery, which delivers for Amazon, over the issue of bogus self Similarly, given that collective agreements are not yet employment. possible the ‘offer’ to these workers may need to be adjusted to reflect their needs e.g. advice on clarifying In March 2018, UK Express Delivery reportedly settled their legal status and access to entitlements and support with drivers to avoid going to tribunal, paying 100% of with personal taxation. the amounts claimed.
Location:
UK-wide with major depots in Swansea, Hemel Hempstead, Dunstable, Milton Keynes, Peterborough, Rugely, Manchester, Leicester, Doncaster, Dunfermline and Gourock.
Recruitment challenges:
Amazon has a long track-record of preventing unions from organising openly and accessing sites has proven difficult. Additionally, the casualised nature of driver contracts, hours etc. makes organising in the traditional fashion a challenging process. ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 29
Company: DPD No. of employees/workers:
6,700
Predominant employment model:
Owner drivers
Main occupation/s:
Drivers
Pay and conditions summary:
DPD describe their salary offer as “competitive”, but like other competitors they rely predominantly on a low cost self-employed workforce. Drivers have reported that: they may be “stood down” from future shifts should they refuse to take on a delivery; though they are compensated for fuel they must pay VAT costs; and drivers are charged every four weeks to lease their vehicles. Importantly, many drivers are paid less than the National Minimum Wage and stringent limits are placed on the delivery routes taken by drivers – illustrating that they are very much self-employed in name only.
Drivers are charged £150 a day when absent and cannot find replacement cover. DPD is now facing a customer backlash following the death of a courier who missed hospital appointments to avoid being fined. The case has also increased pressure on the Government to urgently address poor quality work in Britain.
Other union representation:
The GMB has begun recruiting DPD drivers. It has report- edly recruited more than 100 couriers in Scotland who withdrew their labour for a day in December 2017 in pro- test at unilateral changes to their contracts and against the £150 fines.
The GMB is supporting an employment tribunal claim brought by DPD couriers arguing they are bogusly self-employed and should be treated as workers.
Location:
Nationwide
Recruitment challenges:
DPD drivers are treated as self-employed and organising them presents similar challenges to those in other parcel operators. PAGE ORGANISING FOR THE FUTURE 30 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
Company profile: Capita PLC
Activities Capita PLC offers business process outsourcing (BPO) and professional support services from back office administration to front office customer contact services. It provides services to both the public sector - central government, local government, education, health, justice, emergency services and defence, and the private sector - life and pensions, insurance, financial services, retail, utilities and telecoms. Capita PLC is the leading player in the UK BPO market with a market share of 26.9%. However, Capita issued a profit warning in February 2018 and saw billions wiped of its shares amid concerns it could face a similar fate to collapsed contractor Carillion. Capita has had to take radical action in its attempt to rectify this situation, announcing a £700m rights issue, an asset disposal plan and a strategic review.
Capita PLC signed a strategic partnership with Telefonica UK (O2) in 2013 for 10 years for customer management services, and Updata Infrastructure and SSE Enterprise Telecoms in 2016 for 7 years. This is to improve the regional network footprint of SSE Enterprise Telecoms and provide Updata and Capita with a national optical network for major outsourcing projects.
In the telecoms sector, due to the increasing ease of customers switching suppliers, Capita PLC has expanded its outsourcing opportunities from services into sales and retention, offering telecoms companies better management of customer engagement. Capita PLC claims it can lower support costs, improve the customer experience and increase revenue.
Number of employees Capita PLC employed 75,000 people in 2016, up from 70,000 in 2015. Over 70% of staff came from acquisitions or TUPE transfers.
Table 14: Capita PLC revenue and profit 2014 - 2016
Financial year 2016 Financial year 2015 Financial year 2014
Revenue £4,898 million £4,674 million £4,372 million
Operating profit £422 million £475 million £430 million
Reported profit before tax £72 million* £273 million* £317 million
*Decrease due to £309 million of non-underlying charges, primarily the reduction in the value of intangible assets and in life and pension assets.
Despite the increase in revenue in 2016, pre-tax profit fell 74% to £72 million. The 2016 revenue is divided between the public and private sector - 47%:53% respectively. Of the private sector revenue, the utilities and telecoms sector generated 11% in 2016.
Locations Capita PLC primarily operates in the UK, with its Head Office located in London. It has 80 multi-service delivery centres in the UK, Ireland and Channel Islands and a further 14 worldwide, with an additional 500 business sites, predominantly in the UK, Ireland, and Northern Europe. In Australia, Capita Communications and Control Solutions have a partnership with Fujitsu to offer emergency services systems.
Employment practices Capita PLC has an equality and diversity policy, a speak-up policy, a human rights policy and a modern slavery policy. Capita’s corporate culture website states that the company “recognises a healthy, motivated workforce is good for business”. Capita PLC offers an apprenticeship programme and a 2 year graduate programme. In 2017, staff on the Telefonica contract were awarded a pay rise of 2.0%, which was in line with average pay settlements for the whole economy.
Trade Union presence There are 15 trade unions recognised at Capita including CWU, Unite, PCS, UNISON, GMB, Prospect and TSSA. PCS organise in central government services and UNISON in the local government and health sectors. Prospect’s members are predominantly in DEFRA’s science agency. Unite’s membership is more diverse – whilst it is concentrated in insurance services and banking, there are pockets within IT services (Enterprise Services) and employee benefits. The GMB has some members in Dixons Carphone. With the CWU recognised in customer management at O2, BBC and Tesco Mobile, there are certainly opportunities for organising and recruiting within other customer management partnership organisations, including Samsung, as well as in the digital and software solutions and IT services strands. ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 31
Company profile: Teleperformance Ltd
Activities Teleperformance Ltd offers business process outsourcing (BPO), specialising in multichannel customer experience management. The parent company is a French company, Teleperformance SE which currently operates in 340 contact centres in 74 countries, up from 270 centres in 46 countries in 2013. In 2017, it employed 217,000 people worldwide and its revenue was €4.180 billion.
In the UK, Teleperformance Ltd provides services to both the public and the private sector, with clients in automotive, consumer electronics, financial services, government, health care, insurance, media, retail, technology, telecoms, travel and utilities. Services include customer service, customer relationship management, visa application services, biometric data collection, customer acquisition, back office processing, debt collection, multilingual services, social media and technical support. Teleperformance considers itself the biggest pure play outsourced contact centre provider in the UK market.
Teleperformance currently has contracts with Aviva, Clydesdale Yorkshire Bank Group, Liberty Insurance, Ralph Lauren and Volkswagen in the private sector and the Home Office, the Department of Health and the Environment Agency in the public sector.
Number of employees Teleperformance Ltd employs over 8,000 people according to their web site. Their company annual reports declare 7,798 employees in 2016, 6,975 in 2015 and 7,519 in 2014.
Table 15: Teleperformance Ltd revenue and profit 2014 - 2016
Financial year 2016 Financial year 2015 Financial year 2014
Revenue £195,350,000 £181,183,000 £174,523,000
Operating profit £9,200,000 £10,389,000 £10,319,000
Profit for financial year £6,440,000 £6,896,000 £6,826,000
Turnover has increased year on year since 2012, rising by 4% in 2015, by 13% in 2014 and by 5% in 2013. This is due to new business, growth from the existing client base and off-shoring to Portugal, France, Egypt and South Africa. Operating profit fell in 2013 but has recovered in subsequent years.
Locations The Head Office is based in Bristol and there are a further 19 sites in England, Scotland and Northern Ireland. In England, there are sites at Ashby-de-la-Zouch, Gateshead, Newark, Norwich and Swindon; in Northern Ireland at Bangor, Enniskillen and Newry; and in Scotland at Aidrie, Bishopbriggs, Erskine, Glasgow (multiple locations), Kilmarnock, Linlithgow and Perth.
Employment practices Teleperformance Ltd claims to be committed to career development, offering NVQs and an in-house Advisor Development Course to all staff. There is a leadership programme for Team Leaders and funding for relevant external courses.
The standard working week is 37.5 hours. Most advertised jobs are permanent with starting salaries for Customer Sales Advisors and Customer Service Advisors of up to £15,500 plus bonus. The average wage for a customer service advisor in 2018 was £14,423. Customer Support Engineer roles pay a starting salary of up to £21,000. There are additional payments for language skills with starting salaries rising to £17,000. Salaries for some contracts pay a higher rate, such as the Aviva contract. Aviva is a fully accredited Living Wage employer ensuring contractors also receive the Living Wage. There are staff forums on each site for employee engagement and involvement.
Trade Union presence Despite there being a significant trade union presence in Teleperformance companies in mainland Europe, notably France, Spain, Belgium, the Netherlands and Finland, density levels in the UK are low and estimated to be less than 5%.
There are some Unite members in Teleperformance, for example, amongst the former Language Line operation, which was purchased in August 2016 and includes British Sign Language interpreters and amongst the workers from Boots who were transferred in 2007. There were TSSA members working on the Southern contract who were transferred under TUPE in 2010. PCS took strike action in January 2012 over some of the HMRC’s contact centre operations being taken over by Teleperformance but this did not involve the transfer of any staff.
The CWU has members in the company, including former employees of Vodafone in Northern Ireland who were transferred to Teleperformance, leading to an industrial dispute in 2012. PAGE ORGANISING FOR THE FUTURE 32 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
POTENTIAL FOR CWU MEMBERSHIP GROWTH OUTSIDE THE POST AND TELECOMS SECTORS
IT Sector
The global IT market is expected to grow 25% by 2020 as private investment in key technologies increases, with the most rapid growth predicted in Internet services. A summary of the value and market segmentation the current global IT sector is below.
Table 16: Global IT sector value and market segmentation
Market Subdivision Value in 2015 Share of market
IT sector overall €1,321 billion
IT services & software €992 billion 75.1%
Internet services €329 billion 24.9%
IT services & software IT services €744 billion 75%
IT software €248 billion 25%
Segmentation of IT Services Segmentation of IT Software
8% Consulting
Development 31% 32% Applications 38% & integration
33% Software support Infrastructure
Hardware maintenance & support Vertical specific software
IT outsourcing 13% 8% 37%
Segmentation of Internet Services
25% Cloud activities 28% Search activities
Mobile applications
E-commerce commissions 13% 19% Social media, digital content & online gaming 15%
Source of figures: UNI Global Union. January 2017. State of play in the IT sector. ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 33
The trend in IT companies is to reduce hardware activities Trade union membership in IT and/or to outsource them to cheaper countries, in favour of Current trade union membership levels in the IT industry expanding new technologies. These include: mobility; big data; are low. Despite professional occupations having the cloud computing; virtual reality; artificial intelligence; robotics; highest proportion of trade union membership amongst the the Internet of Things; security. Two companies with CWU occupation groups, at 41.6%,18 the IT sector has some of membership have realigned in this way. Fujitsu has shifted the lowest levels of trade union membership of any sector. into big data and collaborative workplace mobile solutions and In 2016, 10.1% of information and communications workers HP has refocused on mobile services, big data and security. were trade union members, 8.3% of professional, scientific Security is also a priority area for Accenture, along with an and technical workers19 and just 3.5% of workers in computer expansion into analytics and cloud services. programming and consultancy.20
The impact of automation on IT jobs Prospect is the predominant union for professional IT This sector is not immune to predicted job losses due to occupations and operates in several employers where the automation. A report by PWC in March 2017 estimates that CWU has members, including Computacenter and Fujitsu. up to 30% of all current UK jobs are at high risk of potential Additionally, Unite represents workers in the IT industry and automation by 2030, including 390,000 jobs in information has a section for the graphical, paper, media and information and communication (27.3% of current jobs in the sector) technology industries, representing workers in software and 780,000 professional, scientific and technical workers development, design, desk support, servicing and systems (25.6%).15 However, this sector is expected to be more resilient development, telecommunications, electronic data processing than others and whilst traditional jobs disappear, new jobs and storage. PCS also represents a small number of IT workers, will be created as a result of technological developments. formerly in the civil service and government agencies, now This change has already started to take place as job market outsourced to the private sector. analysis shows. In 2013, 6% of all UK jobs, rising to 10% in London, were job types that did not exist in 1990 and are Data Warehousing concentrated in new digital technologies for computing and The increasing reliance on digital data storage and retrieval communications.16 means there is expected to be continued growth in the market for data warehousing solutions. There was significant There is an expected expansion in employment opportunities investment in European data centres in 2016, and the UK at both the lower and higher end of the skills spectrum in the is currently Europe’s biggest data centre market. The CWU sector, from basic data entry to graduate-level engineers. already has members in Digital Realty, which recently signed Information technology in the UK has a projected growth of a new improved recognition agreement with the union after 13.9% and the creation of 153,000 new jobs by 2024.17 acquiring eight Telecity data centre hubs in 2016. There are a number of other employers in this space including Equinix, and there may be some potential for the CWU to grow membership in this area. Finance Sector
The UK’s financial and related professional services industry currently employs over 2.2 million people and is responsible for 10.7% of the UK’s economic output.21 In April 2016, the UK Commission for Employment and Skills predicted significant growth in the sector between 2014 and 2024. However, automation and off-shoring are both significant threats to employment opportunities, with Brexit creating additional challenges, in a sector that had already contracted as a result of the 2008 economic crisis.
15 PWC. March 2017. UK economic outlook. 16 PWC 2017, ibid. 17 UK Commission for Employment and Skills. April 2016. Working futures 2014-2024 18 Trade Union Membership Statistics 2016, Department for Business, Energy and Industrial Strategy, May 2017, table 1.7b. 19 BEIS 2017, ibid, table 1.8. 20 Trade Union Membership Statistics 2015, Department for Business Innovation and Skills, May 2016, table A15 (from FOI request). 21 The City UK. April 2017. UK financial and related professional services PAGE ORGANISING FOR THE FUTURE 34 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
The impact of automation and Brexit on finance sector jobs There are a large number of small trade unions that represent Automation is expected to have the biggest impact on workers in the banking sector, mostly employees in one middle and back offices jobs and it is estimated that around specific bank or banking group: Accord represents workers in 40% of financial services activities and 35% of professional the Lloyds Banking Group; Advance in Santander UK; Aegis in services activities are at risk of automation by the adaption Aegon UK; Britannia Staff Union in the Co-Operative Banking of existing technology.22 Some of the occupations most at Group; Nationwide Group Staff Union in the Nationwide risk of increased automation include insurance sales agents, Building Society; Staff Union West Bromwich Building Society bank tellers, mortgage advisers, underwriters and roles with (US) in the West Bromwich Building Society. a high proportion of collecting and processing data, gathering customer or product information, verifying accuracy of There are two unions that organise across the whole of the records and preparing contracts.23 A report on the impact financial and insurance sector. Prospect has a small number of automation on UK jobs, published in March 2017 by PWC, of members, predominantly in accountancy, auditing and forecasts that 32.2% of all current jobs in the financial and insurance and Unite has a finance and legal sector with insurance industry are at high risk of potential automation 130,000 members throughout all major employers in banking by 2030, above the UK average of 30%, and equivalent to and insurance, including Aviva, Barclays, Capita, Co-operative 350,000 jobs.24 Banking Group, HSBC, iPSL, Legal and General, Lloyds Banking Group, Prudential, RBS and TSB. They have a current Although London is a major employment hub for the sector, organising and recruitment campaign in RBS. more than two thirds of financial services jobs are outside of London. There was a 7% drop in employment in the sector Prospects for Membership Growth in Santander outside of London between 2009 and 2014.25 Leaving the EU is expected to decrease demand for services and lead to Following strategic discussions with Advance and Santander in the relocation of some banking activity outside of the UK. 2018, the CWU has agreed a deal which gives us recognition Modelling by PWC concludes that, as a result of Brexit, there for all employees in Santander Technology, the IT subsidiary will be between a 5.8% and 8.2% reduction in employment of Santander UK. This bargaining unit is expected to grow in in financial services by 2020, equivalent to 70,000 – 100,000 future, with the potential for up to 1,000 members and the jobs. They do expect a gradual recovery with overall job losses prospect of a further 1,000 contractors many of whom are standing at between 10,000 – 30,000 by 2030.26 in the process of being offered direct labour jobs. Santander UK has a total of 22,000 UK employees, of which the CWU Trade union membership in the finance sector currently represents 3,500, whilst Advance represents 18,500. In addition to this, we represent approximately 1,100 of Current trade union membership levels in finance and the 4,000 staff employed in Santander Operations, another insurance are declining more rapidly than the UK average. subsidiary of Santander UK, with Advance representing the In 2016, 12.9% of workers in the sector were trade union remainder. There may be opportunities for further strategic members, a figure that has more than halved since 2000 when discussions to take place in future with a view to securing 30.9% were in a trade union.27 The pie chart below gives the access to additional groups of employees in Santander. latest available percentages of trade union membership by broad category within finance and insurance. Union density in finance 10% and insurance has more Financial ex insurance and pension Insurance, reinsurance than halved since 2000.” 21% 37% and pension Auxiliary to financial and insurance
Real estate activities
10% Legal and accounting activities 22%
Source of figures: Office for National Statistics. May 2016. Trade union statistics 2015, table A15.
22 The City UK. August 2016. UK financial and related professional services: meeting the challenges and delivering opportunities 23 McKinsey Quarterly 2016, issue 3 24 PWC. March 2017. UK economic outlook 25 The City UK. August 2016. UK financial and related professional services: meeting the challenges and delivering opportunities 26 PWC. April 2016. Leaving the EU: implications for the UK financial services sector 27 Trade Union Membership Statistics 2016, ibid, table 1.8 ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 35
OTHER UNION RECRUITMENT AND ORGANISING STRATEGIES AND TARGETS
The changing nature of the economy necessitates a re-evaluation as to how trade unions organise, their offer to prospective members and their means of collaboration. These are avenues the CWU can explore and seek to improve on in part by learning from what other unions are doing and working with them where possible.
What are other unions doing on recruitment and organising? Unite
Unite the Union, commonly known as Unite, was formed in 2007 about change for workers. In August 2016, after a high-profile through the merger of Amicus and the Transport and General campaign, Unite revealed that agency workers at Sports Direct Workers' Union. It is the second largest trade union in the UK had won over £1 million in back pay, the withdrawal of zero and Ireland with over 1.1 million members working across all hours contracts, and a review of working conditions. However, sectors. Although the union has a particularly strong history there is, currently, limited evidence that the campaign has had a in manufacturing and transport, in recent years it has focused positive impact of membership with high-staff turnover a likely energy and resources towards organising workers in the most impediment to establishing a strong workplace presence. precarious sectors. Efforts to unionise agency workers have been supplemented by Unite’s 2015 Financial and Legal Services conference resolved the launch of Unite Community, a new category of membership to: “target agency staff and other ‘peripheral workers’ (e.g. that “brings people outside of the workplace into the union security, catering, postroom) who often fall outside of existing community” on a reduced subscription rate. Members include collective bargaining.” This strategy was affirmed by the union’s students, carers, the retired and the unemployed. 2016 annual conference and has been codified in Unite’s ‘Agency Workers Template’, an advisory document to support As well as offering individual benefits, such as debt counselling shop stewards when recruiting and retaining agency staff. and a free legal helpline, Unite’s Community members are utilising their “social and political reach” in wider campaigning Unite’s rationale for recruiting among agency workers is that activity. This has included support for action against all workers should be represented in a workplace “regardless government cuts, in solidarity with strikes and protests against of employment status” and that “failure to organise agency evictions. It is understood that Community membership does workers will inevitably lead to a casualised workforce and not replace workplace action, but rather helps to supplement diminished bargaining power.” By committing to an organising and strengthen links between trade unionists and their campaign among such workers Unite believes that it will not communities as a whole. only “provide permanent employment where possible” but also challenge the driving down of standards across the economy. In 2016, Unite established a ‘self-employment unit’ both to explore the issues facing self-employed workers and to “pursue Unite has subsequently launched organising campaigns in those employers who shamelessly dodge their responsibilities various sectors, most notably in distribution centres. It is by classifying workers as self-employed”. This is a legal increasingly relying on an issue based campaigning approach to unit which will support Unite’s members in all sectors from raise its profile, expose exploitative working practices and bring construction to the gig economy.
Unite is organising among agency workers to protect employment standards across the economy.” PAGE ORGANISING FOR THE FUTURE 36 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
GMB Usdaw
The GMB is a general trade union with over 617,000 members The Union of Shop, Distribution, and Allied Workers – Usdaw across all sectors of the economy. In recent years it has – is the UK’s fourth largest trade union, representing over focused on exposing the negative aspects of the ‘gig economy’ 429,000 members nationwide. Usdaw members work in a and the necessity of challenging false self-employment. range of occupations, but are generally drawn from the retail, warehousing and distribution sectors. For example, the union On 26 October 2016 the London Central Employment Tribunal has a recognition agreement with Tesco and partnership delivered its verdict on the self-employed status of two Uber agreements with Morrisons and Asda amongst other retailers. drivers, ruling in their favour that they were wrongly classified by their de facto employers as “independent contractors”. Usdaw claims to be Britain’s second largest road transport In turn, the Tribunal ruled Uber drivers are therefore entitled union – after Unite. However, among owner drivers, Usdaw’s to essential workers’ rights including to be paid the National efforts to recruit have been thwarted by a general lack of Minimum Wage and to receive paid holiday. enthusiasm. The union has, for example, previously attempted to recruit Hermes drivers but found little support for their This was the first time that a major platform provider has offer. This may be because Usdaw has, as yet, not developed faced legal action in the UK over whether its drivers are a clear/unique offer for the self-employed and is generally workers or self-employed. As part of its defence Uber denied associated with commercial haulage rather than consumer that its drivers were entitled to workers’ rights, as it is just a deliveries. technology company, not a taxi provider, and that Uber drivers do not work for Uber but instead work for themselves as However, with a range of benefits and offers available self-employed business men and women. However, this was to members, including vehicle insurance and training overruled on the grounds that far from being a “mosaic of opportunities, it is possible that this situation could change 30,000 small businesses”, Uber drivers lacked the autonomy in the future. Usdaw’s benefits also include discounts on a over their affairs at work required to be considered self- range of goods and services including holidays, cinema tickets, employed. theme parks, restaurants and gym membership, which Usdaw promotes as an opportunity to save the cost of membership. The GMB have subsequently launched a substantive organising campaign across the gig economy. In a public statement, the It is notable that Usdaw has enjoyed substantial growth in the union stated that it would review the contracts at other firms past 15 years reflecting a recruiting campaign that focused on that offer “bogus self-employment” and has subsequently major employers including Sainsbury’s and Tesco. launched legal action against firms including Hermes, DPD and UK Delivery Express. As with Unite’s experience in Sports Direct, however, there is as yet limited evidence that the union’s high-profile campaigns have substantially strengthened membership density.
Despite this, it is anticipated that alongside more traditional organising efforts targeted at the gig economy, the GMB will continue to pursue legal challenges to those firms it sees as exploiting falsely self-employed labour.
The GMB has launched an organising campaign in Uber and across the gig economy.” ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 37
Community The IWGB in the courier sector
Community is the TUC’s smallest general union, forming Legal action has been taken by the Independent Workers in 2004 as a merger between the Iron and Steel Trades Union of Great Britain (IWGB), a small, independent trade Confederation and the National Union of Knitwear, Footwear union whose members are predominantly low-paid migrants and Apparel Trades. It has subsequently grown through in London, Bristol and Brighton. Although the IWGB is best mergers with a number of other specialist/craft unions. known for organising cleaning staff, it launched an organising campaign among couriers in 2015. Subsequently, the While several trade unions have identified self-employment union began legal proceedings against companies including as a challenge to be overcome, Community is clear that it CitySprint, Addison Lee, Excel and eCourier; demanding that also poses opportunities to be embraced. In 2015 the union its members be treated as workers rather than contractors. set up a section for self-employed workers and freelancers The union won all three of these cases, but the companies in recognition of their growing importance to the British are either appealing the decision or amending the wording of economy and challenges they may face in the workplace. contracts to avoid acting on the tribunal’s ruling. Community has subsequently developed a package of member benefits that includes support with areas including health In January 2017, the London Central Employment Tribunal and safety responsibilities, insurance, tax returns, access to ruled in favour of IWGB member Maggie Dewhurst, a courier for training, pensions and employment law. CitySprint who she claimed had misclassified her employment status. The judgment, written by employment Judge Jo Wade, They have also worked with the Freelancers Union, an described CitySprint’s business model as “contorted” and American trade union that represents over 300,000 self- “indecipherable”. Importantly, the judge suggested that “it is employed workers. Subsequently Community established a CitySprint which has the power to regulate the amount of work partnership agreement with Indycube, a co-operative working available, and it keeps its couriers busy by limiting the size space, to help provide resources and support to self-employed of the fleet”, again undermining any claims that couriers are workers including access to office space. Branding itself “the genuinely self-employed. union for the self-employed” Community has developed a service model that includes access to legal support, factoring The IWGB brought a case before the Central Arbitration services to ease cash flow and discounts on insurance Committee (CAC) seeking union recognition for collective products. bargaining on behalf of Deliveroo couriers in 2017. The CAC ruled against this on the basis that the couriers were not Although Community has historically represented members workers, and it was reported in February 2018 that the IWGB is in the steel and garments sectors it has sought to expand applying for a judicial review of this decision. its influence into new areas. It has, for example, members in industries as diverse as bookmakers, prisons, charities In March 2018, the CAC ruled that the IWGB must be and professional services. For each it has developed tailored recognised for collective bargaining at The Doctor’s membership packages to improve its service offer. Laboratory (TDL), which delivers pathology samples and blood to NHS hospitals. This makes IWGB the first union in How are other unions organising the UK to be recognised for collective bargaining purposes self-employed workers? with a company in the gig economy. The result was described by General Secretary Jason Moyer-Lee as a demonstration The growing number of firms using self-employed workers that “organising and winning in the so-called ‘gig economy’ is has necessitated a reorientation in trade union organising possible.” The union has now launched a £1 million holiday pay and recruitment strategies. While most trade unions built claim against TDL on behalf of around 50 couriers. their membership through collective bargaining agreements in large workplaces, such models are unviable in businesses that rely mainly on self-employment and other casualised forms of labour.
The Independent Workers Union of Great Britain, BECTU and Ver.di have all been active in organising and representing self-employed workers, as set out in the case studies below.
The strategies outlined here demonstrate the opportunities that exist for trade unions to engage self-employed workers and to organise for stronger rights and protections across our economy. The CWU may benefit from pursuing a similar route in order to maximise opportunities for membership growth and to help protect workers against a race to the bottom on pay and job security. PAGE ORGANISING FOR THE FUTURE 38 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
BECTU (a sector of Prospect) The SEIU’s Fight for $15
BECTU is the UK’s media and entertainment union and The Fight for $15 is an example of an issue based campaign became a sector of Prospect in January 2017. It represents which has helped to exert political pressure on behalf of low contract and freelance workers in a range of sectors, including paid workers in the United States. The campaign began in broadcasting, cinema, theatre and the arts. BECTU has 2012 when two hundred fast-food workers organised by the developed a range of services to attract self-employed Service Employee’s International Union (SEIU) took strike action workers, including tax advice, guidance and influence on to demand $15/hr and union rights in New York City. In the standard rates of pay, alerts on bad payers, and support subsequent 6 years, it has become a global movement with with chasing bad debt. campaigns taking place in over 300 cities across six continents.
BECTU has also, somewhat uniquely, established collective- Though the Fight began with fast-food workers, activists are bargaining arrangements with a number of major companies drawn from sectors as diverse as retail, child care and health. on behalf of self-employed workers. Chief among these Indeed, the Fight’s website suggests it is a campaign by and for is the BBC where BECTU has collaboratively established a “underpaid workers everywhere”. Working across unions, the Freelance National Council “to discuss issues affecting the campaign’s basic demand is for a $15 minimum wage, however, BBC's freelance community”; established a specific agreement the campaign has also undertaken more general mobilising covering Drama productions in BBC Vision and entered around a range of socio-economic issues. into “a model agreement to cover other production genres e.g. Entertainment, Factual, to be implemented as BECTU In 2013, on the 45th anniversary of the Memphis sanitation demonstrates the agreed density of membership.” workers’ strike, the Fight organised fast food workers in cities including Memphis, New York, Chicago and Detroit, undertaking It should be noted that the self-employed workers represented rolling action in hundreds of workplaces. They were later joined by BECTU are generally highly-skilled and few in number. in action by home care workers, illustrating the campaign’s In this sense, their experience is difficult to replicate in broad nature. Within 3 years the campaign had undertaken sectors such as transportation or logistics. action in over 350 cities, across a multitude of low-paid sectors.
Notably, the Fight has long had an avowedly political direction. Ver.di For example, in the wake of the murders of Michael Brown and Eric Garner at the hands of police officers, it helped to Ver.di is the second largest trade union in Germany (after IG coordinate strikes and sit-ins alongside Black Lives Matters. Metall) with over 2 million members. It has been targeting SEIU organisers have also worked with unions internationally to self-employed workers since it was founded in 2001, and has develop transferrable community engagement and organising around 30,000 self-employed members who mainly work in strategies aimed at the lowest paid workers. In the UK, for the media, IT and education sectors. In order to cater for the example, the Bakers, Food and Allied Workers Union have wide ranging needs of its self-employed membership, Ver.di referenced the Fight as a model for their ’10 Pounds Now’ has set up mediafon (www.mediafon.net). This is a complex campaign and historic industrial action against McDonalds. network offering a range of services to self-employed members which can provide support both individually and collectively. According to Gary Chaison, a professor of industrial relations at Mediafon provides help in disputes with clients, and counselling Clark University, the Fight has developed a unique characteristic on contractual, tax and social security issues. It operates by among labour movement campaigns to date: not only does transmitting questions from the self-employed to a team of it seek to enhance collective bargaining and rights within the occupational experts in various fields. workplace, but it has adopted a communitarian approach to extend rights across the whole community.28
To date the campaign has had a number of material successes. In 2014, for example, the Seattle City Government ruled that a $15 minimum wage would be introduced by 2021 with a 7-year staging process to meet the ambitious target. While Similar localised wins have been reported, and two challengers for the Democratic Presidential nomination – Martin O’Malley and Bernie Sanders – offered their support, the goal of ’15 dollars and a union’ in every workplace remains elusive. Adding to difficulties are concerns in some quarters that the Fight has detracted from traditional workplace bargaining. According to Andy Stern, a former SEIU President, “a social movement like Fight for $15 transfers money from your members to a broad-based fight”, but provides limited opportunities to increase membership levels or density.
28 Fight for $15 swells into largest protest by low-wage workers in US history, Guardian, 15 April 2015 ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 39
THE IMPACT OF DIGITALISATION IN THE POST, TELECOMS AND FINANCE SECTORS
A widely quoted Oxford Martin paper (Frey and Osborne) Another potential threat to Royal Mail is the prospect of on computerisation predicts that 47% of jobs are at “high Uber launching its courier service UberRush in the UK. The risk” of automation in the USA perhaps over the next service connects customers with a courier rather than a taxi decade or two,29 whilst another of their reports predicts and at present it only operates in the United States. Uber that 35% of jobs are at high risk in the UK.30 The study on says it currently has no plans to launch UberRush in the UK, the USA estimates the probability of computerisation for but analysts say it is just a matter of time before it launches 702 detailed occupations, ranking them from least to most elsewhere.32 computerisable. Against this backdrop, the CWU faces a major challenge in It shows that engineering technicians, telecoms installers recruiting and organising postal workers in new and growing and repairers, and customer service reps have a relatively operators and preventing a race to the bottom on pay and low probability of computerisation. Postal service clerks, conditions across the postal sector. Longer term, not only loan interviewers, heavy truck drivers and postal service mail does the possibility of driverless vehicles present a threat to sorters have a relatively high probability of computerisation. postal jobs, but there is also a potential future threat from Automotive technicians, postal service mail carriers and the development of automated drones for the delivery of delivery service drivers sit somewhere in between. packages. Amazon announced in 2016 that it is working on a project called Prime Air, a future delivery system designed These findings should be read on the understanding that they to get packages weighing up to five pounds to customers in follow an occupation based approach i.e. they assume that under 30 minutes using small drones.33 There is no timescale whole occupations rather than single job tasks are automated for its introduction, but Amazon says the automation by technology. It should be noted that the findings have been technologies already exist and that it is now working on challenged by a 2016 working paper for the OECD which getting to a point where it can demonstrate that it operates follows a task based approach. The OECD paper argues that safely.34 most occupations contain tasks that are difficult to substitute at least for the foreseeable future and that therefore the impact of automation on jobs will be much less severe.31 The threat to jobs in the telecoms sector The paper estimates that 10% of UK jobs are at high risk, considerably below Frey and Osborne’s 35% prediction. The predictions set out above indicate that many of the jobs carried out by our telecoms members, including line installation and repair and customer service roles, are at a relatively low The threat to jobs in the postal sector risk of automation. It is important to note that there are other, less optimistic predictions regarding customer service roles Despite the OECD’s challenge to their findings, Frey and however, with some commentators expecting customer service Osborne’s estimation of a relatively high probability of postal roles to be replaced by automated conversational interfaces or service mail sorting jobs, driving jobs and postal service clerks ‘chatbots’ in the next decade. Others disagree though, arguing being computerised is clearly of some concern for the CWU. that front-end chatbots have two major weaknesses compared to a human: they lack empathy and are not capable of problem We are already aware of the damage that automation in mail solving. Overall, the evidence suggests that routine customer centres is having on postal jobs, combined with e-substitution service work will increasingly be automated, whilst humans will and the ongoing decline in letter mail. Over the last 14 years continue to be needed for more complex tasks. there has been a reduction of around 70,000 staff in Royal Mail – from 212,000 in 2003 to 141,800 in 2017. It is encouraging that BT has been recruiting more engineers and UK customer service representatives in response to At the same time, the continued growth of e-commerce is customer demand for better, more reliable communications driving higher parcel volumes, helping Royal Mail to remain services. profitable and offset the decline in letters. However, it has also given rise to fierce competition in parcel delivery from the likes of Amazon, Hermes and Yodel, all of which rely on self- employed owner drivers who are paid poverty wages and are denied access to basic employment rights such as paid holiday, sick leave and maternity rights.
29 Frey, C. B., Osborne, M. A., The Future of Employment: How susceptible are jobs to computerisation, Oxford Martin, 17/9/2013 30 Technology at Work v2.0, Citi, January 2016 31 Arntz M., Gregory, T. & Zierahn, U., The Risk of Automation for Jobs in OECD Countries: A Comparative Analysis, OECD working Paper 28/6/2016 32 Delivery on demand: is Uber’s courier service a threat to European operators? Guardian, 16th February 2016 33 Amazon Prime Air, frequently asked questions, accessed on 7th March 2018 34 Exclusive, Amazon reveals details about its crazy drone delivery program, Yahoo Tech, 18th January 2016 PAGE ORGANISING FOR THE FUTURE 40 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
There is also a general drive, including at EU level, for investment in high speed broadband networks which could Postal mail sorting help to secure and create jobs, at least in the short to medium term. Longer term, there is a risk that the growth of fibre and jobs are thought the phasing out of copper networks will create a much more robust infrastructure that requires less repair and therefore to be at high risk fewer engineering jobs. However, copper is still a vital part of the network, and a strategy that includes fibre is vital for BT to of automation.” continue to compete effectively and win new customers.
The threat to jobs in the financial services sector As set out on p.34, there have been predictions that the Investment in high finance sector will grow in the next ten years. However, more recent forecasts from PWC suggest an overall reduction in speed broadband could finance jobs as a result of Brexit. Studies also show that up to 40% of financial services activities are thought to be at risk of automation from existing technology. The impact on finance help to create jobs.” sector jobs is expected to be varied, with some roles at high risk of automation and some at low risk. The Frey and Osborne study predicts that most finance occupations, which involve a lot of tasks requiring social intelligence, are largely in the low risk category.35 However, many of the examples included in the study focus on high skill jobs such as financial managers, financial examiners and financial analysts. Some of the lower skilled finance sector jobs such as loan interviewers and 40% insurance sales agents are in the high risk category. of financial services Other research indicates that there is a significant threat to some of the more routine or less highly skilled jobs in the activities are thought finance sector. For example, a report from the McKinsey Global Institute in 201336 found that up to $9 trillion in global wage costs could be saved as computers take over knowledge-in- to be at risk from tensive tasks such as analysing consumers’ credit ratings and providing financial advice.37 automation.”
35 Frey, C. B., Osborne, M. A., The Future of Employment: How susceptible are jobs to computerisation, Oxford Martin, 17/9/2013 36 Disruptive technologies, McKinsey Global Institute, May 2013 37 Robot revolution, rise of thinking machines could exacerbate inequality, Guardian, 5th November 2015 38 ETUI, Digitalisation of the economy and its impact on labour markets, Working Paper 2016 ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 41
EXPECTATIONS OF FUTURE GROWTH AND DECLINE IN THE LABOUR MARKET
The European Trade Union Institute published a paper in 2016 identifying jobs at most and least risk and new jobs being created by digitalisation as shown in the table below.38 Jobs at most risk of automation tend to be those that follow well defined procedures, whilst those at least risk tend to be those that require creative or social intelligence, or a high degree of flexibility and physical adaptability.
Table 17: Jobs in the Digital Economy
Jobs at greatest risk of automation Jobs at least risk of automation New jobs / digitalisation / digitalisation
Sales and commerce Legal services Top of the scale Data analysts, data miners, data architects Transport, logistics Management, human resources manage- ment Software and application developers Manufacturing industry Business Specialists in networking, artificial Construction intelligence etc. Some aspects of financial services (e.g. Some aspects of financial services (e.g. credit financial managers) Designers and producers of new intelligent analysts; insurance claims and processing machines, robots and 3D printers clerks) Health service providers Computer workers, engineers and scientists Digital marketing and e-commerce Some types of services (e.g. translation, tax specialists consultancy) Some types of services (e.g. social work; hairdressing; beauty care) Bottom of the scale Digital ‘galley slaves’ (data entry or filter workers) and others working on the digital platforms.
Uber drivers, casual odd-jobbing (repairs, home improvement, pet care, etc.) in the ‘collaborative’ economy
Source: Christophe Degryse (ETUI 2016)
The UK Commission for Employment and Skills has assessed employment prospects in the UK labour market over a 10 year period (2014 – 2024)39 and concluded that there will be a small overall growth in employment, driven by: construction; trade, accommodation and transport; business and other services sectors. They estimate that employment growth will slow during the second half of the period. The table below summarises the numbers actually employed in 2014 alongside the predictions for 2024 by broad employment sectors as well as the percentage growth over 10 years.
However, this report was published before the EU referendum result and undoubtedly Brexit will have an effect on the job market. The impact will vary depending on the terms of Britain’s exit from the EU, access to the single market and levels of any tariffs introduced. A likely outcome will be to increase the rate of decline in employment opportunities in British manufacturing.
39 UK Commission for Employment and Skills. April 2016. Working futures 2014-2024 PAGE ORGANISING FOR THE FUTURE 42 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
Table 18: UK employment forecasts by sector 2014 - 2024
Employment levels Employment growth Employment growth Sector Employment levels 2024 2014 2014-2019 2019- 2024
Primary sector 792,000 765,000 -1.1% -0.7% and utilities
Manufacturing 2,553,000 2,350,000 -0.3% -1.6%
Construction 2,276,000 2,393,000 1.7% 1.0%
Trade, accommodation & 9,032,000 9,248,000 1.0% 0.5% transport
Business & other services 11,153,000 11,552,000 1.2% 0.7%
Non-marketed services 8,607,000 8,833,000 -0.2% 0.5%
Total 34,413,000 35,141,000 0.6% 0.4%
Source: UKCES, 2016
The UK Commission for Employment and Skills has also produced data by broad occupational group for the same time period (2014 – 2024).
Table 19: UK employment forecasts by occupational group 2014-2024
Net change Net change Net change Occupational category 2014 levels 2019 levels 2024 levels 2014 - 2019 2019 - 2004 2014 - 2024
Managers, directors and 3,304,000 3,612,000 308,000 3,802,000 190,000 498,000 senior officials
Professional occupations 6,596,000 7,115,000 519,000 7,471,000 356,000 875,000
Associate professional and 4,638,000 4,964,000 326,000 5,176,000 212,000 538,000 technical
Administrative and 3,565,000 3,315,000 -250,000 3,176,000 -139,000 -389,000 secretarial
Skilled trades occupations 3,611,000 3,576,000 -35,000 3,514,000 -62,000 -97,000
Caring, leisure and other 3,134,000 3,359,000 225,000 3,543,000 184,000 409,000 service
Sales and customer service 2,600,000 2,605,000 5,000 2,603,000 -2,000 3,000
Process, plant and 2,067,000 1,991,000 -76,000 1,936,000 -55,000 -131,000 machine operatives
Elementary occupations 3,652,000 3,722,000 70,000 3,771,000 49,000 119,000
Total 33,167,000 34,259,000 1,092,000 34,992,000 733,000 1,825,000
Source: UKCES, 2016
The above table shows that the occupational categories most and technical occupations. This growth can be explained by at risk of decline are: administrative and secretarial; skilled the expansion of the technological, engineering, science and trades; process, plant and machine operatives. These are all research roles required by the Fourth Industrial Revolution. areas where technological development will have most impact The other key growth area is in caring, leisure and other with automation of jobs. The predicted growth in construction service occupations, partly due to the difficulty in automating is off-set by the ongoing decline in manufacturing and even some of the manual functions of caring, coupled with an aging construction is not immune from automation, with the population. potential roll-out of modular housing. The increase in roles at the top end of the job market Sales and customer service jobs are expected to remain static for managers, directors and senior officials, as they help as elements of routine work and enquiries can be automated, organisations navigate the necessary change management leaving workers to develop specialisms and deal with more processes, as well as the bottom-end of the market, complex queries. with elementary occupations that require no training or qualifications, is a worrying trend that shows the increase in The largest increase in employment opportunities will be in inequality that the Fourth Industrial Revolution is expected professional occupations as well as associate professional to bring. ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 43
CHALLENGES FOR TRADE UNION ORGANISING IN THE NEW WORLD OF WORK
The growth of self-employment and the Fourth Industrial Revolution with collaborative, online work platforms and advances in artificial intelligence, have huge implications for trade union organising strategies. Traditional workplaces with permanent workforces are increasingly giving way to more flexible forms of employment, and unions are having to think creatively about how to appeal to workers and attract new members in this changing environment.
Experts predict that some work will be displaced by The construction industry has been plagued by false self- technology and that new work will be created to support employment since the 1980s, stimulated by a unique tax the technological developments. The types of jobs will system for construction workers. This has undermined the change, as will the way that work is organised. Low and high relevance of industry collective agreements and therefore the skilled work will continue to be available but it is predicted value of trade unions. A failure to adapt in a timely manner that there will be a hollowing out of the amount of work in to the changing structure of work and recruit and organise the middle, especially for skilled workers in manufacturing. amongst self-employed workers was a significant factor in the The UK Commission for Employment and Skills predicts demise of UCATT. changes: “in favour of the service sector … white collar, non-manual occupations … [with] further job losses for The developments in technology and its impact on the world many manual blue collar jobs.”40 of work in the next decade will be transformative. But how that transformation manifests itself is still a matter of debate. There are already structural changes in work. The gig economy Predictions of actual job losses differ wildly. The 2016 World has expanded, following the global financial crisis, economic Economic Forum predicted a short-term neutral impact on uncertainty and a rise in unemployment. Many working in employment overall.43 Respected Political Scientist, Professor the gig economy are doing so out of necessity. However, the Philip Tetlock, conducted a 20 year study into forecasting and value of working flexibly and ‘being your own boss’ has been concluded that expert predictions were as accurate as a “dart- pitched persuasively to a younger generation of workers, throwing chimpanzee”.44 fuelled by an increasing demand for online goods and services by consumers. Trade unions need to recognise this. Some Ultimately, the technological evolution has the potential gig workers are using this model of working as a source of to drive the economy and improve quality of life or create additional income; some are students who will move on to greater inequality and disrupt labour markets. The outcome alternative careers; some are retirees supplementing their is a political choice. Will the loss of quality work be acceptable pension income. The more varied the motivations for workers, to the public, especially those middle income workers who will the harder it is for trade unions to organise. be most adversely affected? Will the loss in tax revenue and increasing social security bill be acceptable to government? Is However, the perception and reality of gig work varies the public ready to accept greater automation in areas with significantly. A CIPD survey last year found that fewer than an untested safety record, such as driverless vehicles? Will four in ten gig workers say they feel like they are their own investors be deterred by potential litigation in the event of boss.41 Furthermore, of those for whom gig work was their accidents? main job, only 31% said they were “living comfortably” or “doing alright”.42 The impact of technology on jobs and workers’ rights needs a wider policy debate. Pressure is already mounting on The trade union movement has an obligation to help those politicians to address the status of those working in the who are reliant on precarious work, trapped in under- gig economy. Whilst companies such as Uber claim they employment and false self-employment, as well as a vested are platforms to enable sharing of skills and assets, recent interest. Unchecked, these workers will continue to be used to Employment Tribunals have found that they are acting as undermine secure, better-paid, direct labour. employers. Even the CIPD is calling for greater clarity about the demarcation between ‘employee’, ‘worker’ and the ‘self-employed’.45
40 UK Commission for Employment and Skills. April 2016. Working futures 2014-2024 41 CIPD. March 2017. To gig or not to gig? Stories from the modern economy 42 CIPD, 2017, ibid 43 World Economic Forum. 2016. The future of jobs: United Kingdom profile 44 Tetlock, Philip & Dan Gardner. 2016. Super-forecasting: the art and science of prediction: 4 45 CIPD. March 2017. To gig or not to gig? Stories from the modern economy PAGE ORGANISING FOR THE FUTURE 44 OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE
Unfortunately, the UK Government has demonstrated that it has no real intention of genuinely tackling the scourge of Trade unions need insecure employment in the UK economy. The Government Commissioned Taylor Review of Employment Practices, to be organising and published in 2017, was widely criticised by the union movement as totally inadequate to address the problems gathering evidence workers face. The Government is now consulting on some of Taylor’s recommendations rather than taking action. from gig workers.”
For trade unions to most effectively shape this debate, we need to be organising and gathering evidence from gig workers. With delivery services forming a significant part of the gig economy, the CWU is ideally placed to use its expertise to recruit and organise. When gig workers were finding it A view from Charles Heckscher, Professor of Labour difficult to make ends meet, their second more popular source Relations, Rutgers University of redress was trade unions (14%), after Citizens Advice (25%). However, 39% stated they did not know where they could get Corporate strategies are increasingly focused on flexibility and temporary task forces. The mass-production model help.46 There is a huge opportunity to raise awareness of the of the twentieth century, using large groups of permanent role of trade unions amongst this group of workers. workers, will be less dominant than in the past.
There could also be an opportunity to organise amongst Work is increasingly becoming flexible, innovative, the skilled workers that will be required to deliver the access collaborative and non routine. Young workers see flexibility to mobile networks and data that the Fourth Industrial as promising choice and opportunity. They are unlikely to Revolution is reliant on for its success. expect a lifetime of security at a single firm, and many wouldn’t want it if it was available.
Unions remain reasonably successful in the old landscape of work, which is still dominant in most countries. However, traditional methods of industrial unionism have not worked very well in the new landscape of decentralised, flexible work. There is reason to look beyond the labour traditions for new ideas that might succeed in the emerging new landscape.
The young and technically skilled often see unions as out of date, needlessly confrontational, and out of step with their desires for challenge and mobility. This presents a challenge for unions to appeal to workers who will develop through There is reason to multiple employers rather than a single company. look beyond the A new offer from trade unions might include the provision of services to support career security rather than job security. Unions could look to set up worker based organisations labour traditions using combinations of mutual insurance and government policy. These organisations could offer an array of services for new ideas that that would in the past have been offered by employers: job placement, training, career advice, pensions, financial might succeed in planning, and health care.
Source: Solidarity and Collective Action in the New World of Work, the emerging new UNI Global IT Organising Conference, Charles Heckscher, Rutgers University, landscape.” January 2017
46 CIPD, 2017, ibid NOTES NOTES ORGANISING FOR THE FUTURE PAGE OPPORTUNITIES FOR CWU MEMBERSHIP GROWTH IN A DIGITAL AGE 47 CWU 150 The Broadway, Wimbledon, London, SW19 1RX email: [email protected] Tel: 020 8971 7200 Fax: 020 8971 7300 General Secretary: Dave Ward 05158/18 Published by The Communication Workers Union April 2018